Applovin Corporation – mobile app and gaming company, which is backed by private equity giant KKR, said on Apr 7, 2021 it was aiming for a valuation of more than $30 billion in its US initial Public Offering (IPO).
- Detailed instructions how to participate in Applovin (pre-IPO, offering price) see below👇
What is an IPO and how it works
IPO is a process of offering shares of a private corporation to the public in a new stock issuance. Why go public? The primary benefit of going public is easier access to capital.
To go public, a company must have a track record of growth and other favorable results and hire an investment bank (Morgan Stanley, J.P. Morgan, KKR, BofA Securities and Citigroup in Applovin case) to come in and underwrite the IPO. The underwriters also performed due diligence and verified financial information and business model.
Once the paperwork done, the company sells the stock to institutional investors. When the initial block of shares has been sold, the company with underwriters' help sets an initial price and date for the stock to begin trading on a stock exchange.
Company Profile and Financial Indicators before Applovin IPO
The company provides software solutions for mobile game developers to automate and optimize marketing and app monetization. The company initially worked with its customers to design, update and fine-tune smartphone interactions for all users on whatever device they choose. In recent years, the company has become a major player in both mobile gaming and in-app marketing. Much of what the company is doing now involves helping developers, many of whom are in the gaming sector, find users and monetize their apps.
AppLovin earnings increase every year, rising by 24% in 2019 and by 38%, in 2020. The earnings are going up faster than the industry average, which enables investing into new products; currently, the company owns more than 200 mobile games by 12 studios, with a daily audience of 32M people.
There are over 2B people across the world playing mobile games, an IDC report says, while Statista reports the overall number of gaming apps amounts to over 1.30M. Meanwhile, Sensor Tower affirms that games account for 39% of all mobile app downloads, for 72% of all payments in app stores. Basing on the IDC data, AppLovin expects its market share in the mobile app ecosystem rise from $189B on 2020 to $283B in 2024.
- Market Cap: $28,63B
- Earnings, in 2020: $1,45B
- Net Profit, in 2020: -$125,93M
How to Buy Applovin Stocks Before the IPO (Offering Price)
In the past, IPOs as highly profitable investments were available only to the privileged customers of the leading brokerage firms and it was challenging for retail investors to gain access. You couldn't buy shares paying the price set by the company and you had to wait until the shares actually start trading on the public stock market at whatever stock price supply and demand allows.
Technologies and marketplaces changed the rules of the game, now regular investors can get pre-IPO shares. To participate in Applovin IPO you need to use an IPO investing app like Freedom Finance (NASDAQ: FRHC), TD Ameritrade or Fidelity. They give its customers access to IPOs and secondary offerings through their existing brokerage account. Also you can buy Applovin shares when the company goes public via a commission-free trading app like eToro.
🚨 Detailed Instructions How to Participate in the Applovin IPO before public trading:
Below we share the instruction how to participate in the approaching Applovin IPO using Freedom Finance (Tradernet platform). This marketplace is chosen as an example because Applovin is already listed there.
* Freedom Finance services are NOT available to US citizens and residents.
- Apply for a Freedom Finance account — you need to prepare your identity document and a document confirming the address of residence (utility bill). The verification process is very fast, it will take 2 minutes to create your account.
- Deposit your account — to participate in an IPO, your account must have available funds in the amount you send IPO application for.
- 💡 Tip: It's recommended to deposit your account in advance. Often the exact IPO date is undefined until the last day. You may have a short notice for participation and account deposits also takes time for processing. Also, sometimes Freedom sends last-minute IPO offer when you have 2 hours to participate.
- Submit a request to participate in the IPO — when applications are open select Applovin and click Participate in the IPO > input the amount you want to invest > Send your application. Note: Before the book closing, a request can be withdrawn. At the time of the book closing, 1 day before the start of the exchange trading, the specified amount will be blocked on the account.
- Wait for allocation — The actual number of stocks purchased during an IPO depends on supply and demand. The higher underwriter reserves the right to partial execution of collective applications. So if the demand is high you may get less than you applied for. Of course, you will only pay for the shares purchased. The rest of the funds will be returned to your account.
- Start of trading — With the beginning of the public trading on the stock exchange, the purchased shares will appear on the account and a lock-up period will start — a 93-day period of prohibition on sale. You can’t sell stocks, but you can track their current value and growth indicators in your personal member area and a trading terminal.
- Closing your trade — At the end of the 93 days lock-up period, you will be able to manage your stocks at your discretion — leave in the portfolio or sell and withdraw money or transfer the stocks to another depository/ broker in your name. This can be done in your account by clicking the ‘Sell’ button next to the name of the security. In this case, a commission of 0.5% of the amount of the sale transaction is charged.
Is investing in IPOs profitable?
Not always. The average return at the end of the lock-up period is 72%, past IPOs data.
When is the Applovin IPO date?
Applovin's IPO date is April 14, 2021
What is Applovin IPO price range?
$75 to $85 per share.
How to Invest in Applovin after the IPO date (opening price)?
In what currency Applovin IPO and post-IPO shares will be traded?
The Applovin IPO and stock trading currency will be USD.
If you have funds in another currency the cheapest way to convert your currency is to use the mid-market rate (that’s the one you’ll find on Google) which can be done via a fintech service like Wise. Banks may add hidden markups to their exchange rates - charging you more without your knowledge. And if they have a fee, they charge you twice. Wise never hides fees in the exchange rate.
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What is the Applovin (stock symbol)
The stock ticker for Applovin will be APP
Applovin Registration Statement on Form S-1
Sources used: Reuters